Afternoon Update: RBA hikes interest rates; Craig Silvey pleads guilty; and the best outfits from the Met Gala

Want to get this in your inbox every weekday? Sign up for the Afternoon Update here, and start your day with our Morning Mail newsletter Good afternoon – it’s been a busy day so far. As predicted, the Reserve Bank has delivered a third straight interest rate hike as it seeks to head off the inflationary threat from higher fuel prices linked to the ongoing US-Israel war on Iran. The decision to lift the cash rate to 4.35% from 4.1% comes as the central bank revealed a gloomy new set of forecasts that showed intensifying cost-of-living pressures alongside weaker growth. The federal treasurer, Jim Chalmers, said the RBA’s decision to raise the cash rate would “make it tougher” for Australians already paying a “hefty price” for conflict in the Middle East. But before that, the royal commission into antisemitism’s hearings continued with harrowing testimony from Jewish community members, Victoria released its state budget, and the Met Gala rolled around for another year. All of that and more, below. Winners and losers: Victoria’s 2026 budget cuts transport costs and helps parents - but will future generations suffer? Australian author Craig Silvey pleads guilty to possessing and distrib